Orlando Estate & Elder Law

Business Owner Without a Plan? Act Now!

“There is a lot to think about, when business owners begin estate planning.”

As business owners start thinking about the most valuable asset that they own, they need to make some major decisions about their estate plan: do they want to pass the company to the next generation or sell it? In both cases, says Smart Business in the article “Questions for business owners to consider when estate planning,” starting the process of planning needs to begin early to ensure a smooth transition.

If the owner waits until illness or disability occurs to begin planning, chances are good that it will be too late.

First, the business owner needs to determine if the business should continue or if it should be cashed out. If the owner wants to see the next generation take over, the owner will need to take a candid look at how engaged various family members are in the business and if they can realistically manage and continue to operate it, without the founder at the helm.

If there are many family members—kids, in-laws, etc.—then roles need to be defined so everyone knows their responsibilities.

If there are children who have no interest in being part of the business then a decision needs to be made about how they will benefit fairly.

If one of the owners of the business is not a family member, the owners need to discuss how that ownership is going to transfer when one of them departs. You’ll need buy-sell agreements in place, as well as a succession plan. What will happen if one of the owners becomes disabled or dies unexpectedly?

The decision to sell the business or plan for the non-family management team to control the business, needs to be made and acted upon. The management team needs to be on board with these decisions and everything needs to be in writing.

The biggest obstacle to smooth transitions for business owners, is failing to make a decision. If the heirs are left to figure things out and end up battling over shares of the business and responsibilities, the business will suffer, and the family is often left needing to sell an unprofitable business that has lost value.

Planning for a business owner to step down, should start once the business is successful and profitable. Having a succession plan, which also includes an estate plan, prepares for any unexpected occurrences and allows family members to get comfortable in their roles as future leaders of the business.

Speak with an estate planning attorney about your plans for your business to ensure that a successful plan aligns with your estate plan.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Smart Business (Aug. 27, 2018) “Questions for business owners to consider when estate planning”

Sow the Seeds for Family Farm Succession Plan

“The succession-planning process is complex and lengthy. To keep your eye on the ball and meet your goals, your family must meet regularly to foster good communication and trust.”

The future for a farm family depends on family meetings that involve all stakeholders. The likelihood of success is bolstered by meeting in a neutral location, holding short meetings on a regular basis and setting clear goals, according to AgWeb.com’s article “Family Meeting Fundamentals.”

Families who want to hold one meeting a year that covers every single aspect of the succession plan, end up with a room full of confused and sometimes agitated participants. Meetings that occur on a more frequent basis are more likely to succeed, since the process is complex and takes time to work through.

Make sure to include everyone. Leaving out a family member, like a spouse, can create resentment and lead to angry side disputes. Don’t create trouble, where none is needed!

Be smart about selecting a date for the meetings to take place. Steer clear of holidays, as there are usually enough emotional pitfalls for most families to deal with without adding the family business into the mix.

Select a neutral location where everyone can feel comfortable and that is free of distractions. You really do want their full attention. Select a convenient pleasant location to make these meetings welcoming and attractive.

Set an agenda for the meeting, so you are focused on specific topics and tasks.

You may find you need an outside facilitator to help if your group dynamics are not working well. If there’s one person who tends to dominate conversations during social gatherings and family meetings, it will be hard to be productive.

If you are working with an estate planning attorney who is experienced in family businesses and particularly with the special challenges of family farms, he or she may be able to help you run the meeting better than if one of the family members steps up to take the lead. You know your family’s dynamics best—if cousin Susan could never get along with her sibling Mark, having an outside person present may make her think twice about hurling insults.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: AgWeb.com (May 29, 2018) “Family Meeting Fundamentals”

Hear Ye, Hear Me - On Wednesday, January 28, 2015

Please join me this Wednesday for an update on Estate Planning 2015.

The presentation will be held at Horizon Bay at 360 Montgomery Road, Altamonte Springs 32714 from 4:00 to 6:00 p.m.

There is no charge to attend but reservations are requested so we can have plenty of room and materials for all.

Call my friends at Horizon Bay at 407-786-5637 or register on my website.

Bring your questions and come see me this week.

 

UK Historic Wills Are Available Online - Will Yours?

 

Wills can tell a lot about what people value. Looking through old wills can show how values might have changed over the years. The UK has recently aided that effort by making its archived wills available electronically dating back to 1858.

 

We often hear about the estates of recently deceased celebrities. Anyone can read the newspaper or search Google to find out the details of Michael Jackson's estate. However, the estates of historic famous people are more difficult to find. It often requires going to the library and pouring over history books.

 

 In the United Kingdom, however, some historic wills have recently been made available online for people to search through. The Independenthas the story in an article titled "New digital archive will allow public to view wills of historic names."

 

The database includes many famous names, such as Winston Churchill and Charles Dickens. This is an interesting project and well worth a look for anyone who is interested in the lives and deaths of historic figures.

 

 Closer to home, in the United States, something like this would need to be done on the state level.

 

One important message for modern estate planning is that wills are public.

 

 When filed with a probate court, wills become available for the public to access. While it is not as easy to access wills in the United States as it is in the United Kingdom, it can still be done.

 

 Thus, if you want your estate to remain private, you should not rely on a will. Please consider a consultation to explore your options.  Visit my website for more information and to schedule an appointment.

 

 

 

Reference: The Independent (December 27, 2014) "New digital archive will allow public to view wills of historic names"

High-Drama Estate Battle - What Not To Do

Sarah Long was found dead in her home last July. While police are still investigating the circumstances of her death, the battle over her estate is heating up.

Sarah Long was reported missing last July and found dead in her home of gunshot wounds. Initially, her death was ruled to be a suicide. However, inconsistent evidence at the scene later caused police to open up a homicide investigation. The police still do not know what happened to Ms. Long.

 She left behind an estate worth nearly $1 million.

 DavidsonNews.net has the full story in "As police investigate, battle rages over shooting victim's estate."

 Here is a quick overview:

 Long had previously made a will that left everything to her boyfriend. She also had an estranged husband and, under South Carolina law, the husband should be entitled to 15% of her estate regardless of what her will states.  (In Florida, the amount would be 30%.)

 The husband and the boyfriend have been fighting over the estate in probate court. To make interesting matters more interesting, Long's family has also intervened.

 There are allegations that Long made the will giving everything to her boyfriend under duress and that her husband abused her.

 The latest development? The boyfriend and the husband have reached an agreement to which Long's family objects. If it turns out that Long was murdered, then the identity of the killer may also play a role in who gets the estate.

Even if your estate won't involve this kind of intrigue, advance planning can save your family a lot of heartache.  Please contact my office to so we can keep your estate plan drama-free.

 Reference: DavidsonNews.net (December 24, 2014) "As police investigate, battle rages over shooting victim's estate"

Actor's Plan is Ordinary - And Public

The details of another celebrity's estate have recently been revealed. This time it is the estate of late actor Bob Hoskins. Unlike some other celebrity estates, Hoskins' is fairly ordinary.

Actor Bob Hoskins passed away last April at the age of 71. He was known for playing tough guys in movies who normally had a soft interior. Recently, the contents of his will were released.

 He left his entire 1 million pound estate to his wife of 32 years.

 The Daily Mailhas the full story in "Pennies from heaven... Bob Hoskins leave 1 million to wife of 32 years who helped him battle depression." The article includes a brief rundown of Hoskins' acting career, including his time as a circus fire-eater.

 Hoskins' will is somewhat refreshing. Recent celebrity estate cases have often been fairly messy with serious estate planning mistakes. Hoskins, however, did what many ordinary people choose to do, he left everything to his spouse.

 If a mistake was made here, it is that we know what Hoskins chose to do with his estate. By using a will, the details of his estate were made public. If he had used a trust, it is more likely that his estate and his wife's privacy would have remained free from public scrutiny.

 That is something that everyone should keep in mind. Wills are made public. If you do not want everyone knowing the details of your estate, then you need something besides a will.

 I would be happy to educate you on the full range of options available to fit your unique circumstances.  Please visit my website for more information.

 Reference: Daily Mail (December 20, 2014) "Pennies from heaven... Bob Hoskins leaves 1 million to wife of 32 years who helped him battle depression"

Ruby Says "Don't Do It!" - Let Your Dog Survive You

For many people, dogs are more than just best friends. They are a valued member of the family. However, pets, unlike other family members, are legally property. This raises the question whether you can direct that your pets be put to sleep after you pass away.

An Indiana woman named Connie Ley passed away in November. In her will, she made provisions for her pet German shepherd. The first provision was fairly standard. Ley directed that one of her friends should look after the dog. However, Ley also went on to direct that the dog should be put to sleep, cremated and that its ashes should be buried with Ley.

 The Washington Posthas the full story in an article titled "Indiana woman wants to be laid to rest with her German shepherd. One problem: The dog is still alive."

In this particular case, the dog is currently in a shelter waiting for a court to determine whether Ley's wishes will be followed.

 This is not the first time that the issue has come up. In some other cases courts have decided to put pets down as directed in the wills of the owners. The reason for this is that as much as we often think of our pets as part of the family, the law treats them as personal property.

 Animal cruelty laws aside, we are free to do with our pets as we please, including directing what should happen to them after we pass away.

 The lesson here? If you want to determine what will happen to your pets after you pass away, then you should make that a part of your will.   I would be happy to assist in crafting a plan that is fair to you and your furry friends.  

Reference: Washington Post (December 17, 2014) "Indiana woman wants to be laid to rest with her German shepherd. One problem: The dog is still alive"